Airline merger causes concerns
Some Salt Lake flights may be affected by the deal
"Only 2 percent of Delta's seats are in direct competition with Northwest, and only 3 percent of Northwest seats are in direct competition with Delta," said Northwest's chief executive officer Doug Steenland, during a teleconference Tuesday with investors.
Despite those numbers, the merger would result in 12 cities with domestic overlap of nonstop flights. All but four of the 12 airports Salt Lake City, Minneapolis-St. Paul, Detroit and Cincinnati have at least two nonstop competitors.
In Salt Lake City, both Delta and Northwest have nonstop flights to and from Detroit and Minneapolis-St. Paul.
So what will become of flights at the Salt Lake City International Airport?
The new airline would study passenger demand and economic conditions and determine whether flights need to be cut, a person familiar with the merger discussions said. The airline also could adjust with smaller planes, or cut flights but use bigger planes. The new airline would study where passengers are going. If people are in the Salt Lake City airport for a layover between Minneapolis and Los Angeles, for example, the new airline might just add a nonstop flight between the two cities and eliminate the stop in Salt Lake City.
During Monday's announcement, executives at both airlines promised that all of the Delta and Northwest hubs would remain intact and no front-line employees would be laid off if the merger is approved by regulators. The Department of Justice, which can block the deal if it determines competition will be hurt, has up to 60 days to review the plan and object.
The merged airline would be named Delta Air Lines and would be headquartered in Atlanta. Current Delta CEO Richard Anderson would be the new airline's CEO. Ed Bastian, Delta's president and chief financial officer, would have the same position in the new airline. The airline would be the world's largest, Anderson said.
The future of the airline would be in expanding international business. Sixty percent of its traffic would be domestic and 40 percent would be international. "Over time we'd expect to move this mix to 50-50," Bastian said.
By increasing traffic throughout the world, "we build a natural hedge against seasonal demand shifts and regional economic weakness, positioning us for long-term success and increasing financial stability," he said.
The executives said they expect the merger to be ready by the end of the year. The Bush administration is seen as friendly to mergers.
Recent comments
With todays communication technology it's high time to eliminate all...
Fact | April 16, 2008 at 5:48 p.m.
Oberstar thinks deregulation of airlines was bad? Typical democrat....
Matt | April 16, 2008 at 12:17 p.m.
So, Sarah, what would you propose as a solution to the perceived...
Earl | April 16, 2008 at 9:15 a.m.
- Attempted murder case refiled 1:58 a.m.
- Sports on the air 1:38 a.m.
- This weekend on TV 1:38 a.m.
- Birthdays for Saturday, July 11 1:38 a.m.
- 2 men cited on LDS plaza 1:37 a.m.
- S.L. man spots stolen car — his 1:23 a.m.
- Girl critical after run-in with train 1:23 a.m.
- Probe of death treated as slaying 1:22 a.m.
- Taylorsville man arrested in robbery 1:21 a.m.
- HBO defends U. logo use in 'Love' 1:20 a.m.
- Jazz brass debate Millsap match
- LDS seminary principal arrested
- 2 men cited on LDS plaza
- Reactions on Boozer speculation
- Teacher faces new sex charges
- HBO defends U. logo use in 'Love'
- Jazz finances not quite so bleak
- Jazz talking Boozer trade?
- S.L. man spots stolen car — his
- Jazz down Oklahoma City
- LDS seminary principal arrested
160 - Bronco collecting a galaxy of recruits
141 - Jazz talking Boozer trade?
136 - Blazers may offer Millsap a contract
123 - Jazz brass debate Millsap match
99 - Stadium of Fire flag burning was fake
94 - Fairness of BCS debated
81 - Chaffetz eyes challenging Bennett
74 - Letters: Single-payer system best
72 - Services bids farewell to Jackson
70
By now you've probably read about the investigation that showed just how...
The photographs are mysterious, brooding, dark. They show dimples and...
I love Millsap, and the Jazz will find a way to move Boozer and match for...
i think its childish to assume that somebody would actually want to get...
Millsap and Boozer need to stay in Utah. Millsap is Boozers backup while he...
Childish and immature? Its always easier being ignorant and presuming things...
can you use words like testimony and church leadership to critisize a...
Bro P really helped me through a tough time in my life when I had him in...
These are only allegations at present, but I hope when he goes to trial, the...
My thoughts are with the Pratt family right now. Michael I hope you are...
It is interesting that everyone who seems to be a member comments on how nice...
You presume, simply because they were gay, that they were trying to "stir...



